Bitcoin is a globally recognizable entity. Since its creation in 2008, it has come to stand for the entire cryptocurrency industry, for better or worse. Still, there are far too many people that currently invest in cryptocurrency without actually knowing what it is or how it works.
Being able to submit cryptocurrency guest blog posts means that you speak as an authority on a burgeoning marketplace. But how can you speak authoritatively about something if you aren’t familiar with it yourself?
Understanding cryptocurrency, not just Bitcoin, is essential if you aim to be that voice of authority on a growing market. Knowing the essentials of cryptocurrency can help you be as prepared as possible to speak from a knowledgeable perspective.
What is Cryptocurrency?
Before we can truly understand the impact of cryptocurrency – what it has opened potential doors for, its impact as an investment – we must understand what it is and how it works.
The fun fact is that if you take away all the noise, all the flash, and reduce it down to a simple definition, cryptocurrencies don’t seem that flashy. It’s just limited entries in a database that no one can change without fulfilling very specific conditions.
Additionally, traditional currency is managed by a centralized authority or server. That means that transactions need this centralized authority in order for transactions to take place. Cryptocurrencies are meant to eliminate that centralized authority entirely.
Think of it like this: your bank account is basically a bunch of database entries that can only be changed under specific conditions. Money is all about a verified entry in some kind of database. This includes balances, accounts, and transactions of all sorts.
To give a proper definition to cryptocurrency, it would be an internet-based medium of exchange that uses cryptographical functions in order to conduct final transactions. They use what is known as blockchain technology to decentralize, gain transparency, and gain immutability.
This is all meant to provide a secure, safe way to transfer digital currency without tying it to that centralized authority. It takes the power out of the hands of the banking system and puts the authority in the hands of the users.
That is the biggest appeal of cryptocurrency. With so much distrust about the way banks operate, there are more than a few people out there that feel as though they can’t trust the banking system and need an alternative.
Cryptocurrency has the potential to become that change, though we are still in the infancy of the entire process. The potential, though, is very high that things can shift in that direction.